The Japanese currency has fallen to a new 20-year low against the dollar as US and European central banks are highly likely to raise interest rates. Investors are selling the yen and buying the dollar and the euro to lock into higher yields.

The yen weakened to the 134 level at one point during London trading on Wednesday.

Analysts say the Bank of Japan plans to maintain its easy money policy, while the US and European central banks are more likely to raise interest rates. They say investors are acting on a possible widening difference in interest rates. They say the BOJ governor reiterated his stance to keep the current policy at a debate session hosted by the foreign media and his comment also fueled the weakening of the yen.